In the business world, either big or small, they should have a practice to the consistently bookkeep and update their financial accounting records. Some of the largest businesses in the have failed on these practice as they were disorganized. Even come to small-scale business these days are prone to poor accounting process. Most of the small businesses are dependently on cash flow limitation, small business entrepreneurs should have basic knowledge about the accounting. However, to make sure your business financial data do not fall into the worse part, you should start to have this practices each and every week to keep well track on your accounting data.
1.Check Your Cash Position and Bank Account Reconciliation
When your cash transaction has moved in and out from your bank, you need to make sure them always sufficient of the cash flow for your future prove transaction. Besides that, your bank record should be track well and have to understand for the cash in and out records. Miss track of the data always because a trouble for you have “last minute” situation to figure out where was the money come or gone. Therefore weekly bank reconciliation practice should help you to avoid all these, as the transaction data is still fresh in your mind. If you have the time, daily is an even better option.
2.Review Vendor Bill and Payment
Most of the small business owners refuse to do it instead of review on monthly only. But most of them didn’t realize that even the due date over 1 day, and you still need to pay for the unnecessary interest. And even come into worse, the vendor will most likely freeze your account or mark your service for bad payment.
Therefore, sorting out the invoice that you have received from your vendor in weekly, is to make sure you are alert on the cost that is near to the due date. This practices should help you to avoid unnecessary costs for the late fee/penalties payment. This is vital for keeping track of your debts, and it’s also important for establishing a good reputation and credit history with your vendors.
3.Send Outstanding Customer Invoices
No customer likely to pay a bill that receives at a moment the invoice has past due or due on next day. First, this is very unfair to your customer as they are given terms and yet they only received the invoice near the due date. In this case, the customer will have the reason not to paid accord to the due date. If you have delivered services to a customer, then you need to make sure that you follow up with an invoice to get paid. To avoid an awkward situation, make sure you have delivered the invoice accordingly to the date. If the daily update will be the best but weekly should be all right for your happy customers to pay bills on time. Besides that, please do not forget to acknowledge your customers whenever they have received the records.
4.File and Document for Other Transactions
If you want to maximize the profit for your business, you have to know on how to leverage your tax write off. If you have bad filling records, it is hard for you to find out all the available expenses help on your tax write off. Have a good filing system where you can store invoices, receipts, and documentation for anything else related to money that was received or spent. You might consider putting together a vendor file for each business that you work with. Auto-debits, interest payments, and bank fees are some common transactions that you’ll need to record weekly. Most bookkeepers choose to record these before a bank reconciliation to make the process as smooth as possible.
Last but not least, you can hire a bookkeeping and accounting services team to help with your financial data. To expand your business development, you should hire these service to save your time on chained to your desk and crunching numbers records. These services will let you spend more time o
n the management of your business instead of worrying about the daily and weekly financial busywork.
Do you need help with ongoing accounting task? AG Singapore team is well-respected in professional accounting and bookkeeping experts. Give us a call today, and let’s start a conversation.
